Agenda - Economic Development Authority - 06/08/2017

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Economic Development Authority (EDA) Meeting Date: 06/08/2017 Submitted For: Patrick Brama, Administrative Services By: Patrick Brama, Administrative Services 4. 2. Title: Maple Investments LLC (dba Sharp & Associates) Purchase Agreement Purpose/Background: PURPOSE Consider the attached purchase agreement (purchase offer of $606,622) from Sharp & Associates. for a 9.33-acre City -owned property located just south of Vision Ease Lens for an industrial development, including the immediate construction of a 50,000 square foot speculative industrial building. BACKGROUND Site Information This site is zoned E-2 Employment District; which generally allows for "business park" type users. This site is located in one of the City of Ramsey's established business parks, with access to 143rd Ave and Jaspar Street. The City of Ramsey purchased the "Bury & Carlson" site in 2008 for $1.75M, or $1.90 psf (1.84 psf for land only). The City purchased the roughly 20 acre Bury & Carlson site for the purpose of locating a new City Public Works Campus. In late 2015, the City completed a Space Needs Analysis for a new Public Works Campus. As a result of that exercise, it was identified, a 9.33 acre portion of land was unneeded for the Public Works Campus, on the north side of the former Bury & Carlson site. Per informal Council direction, staff was asked to market this parcel for economic development purposes. The City purchased this site with the following funding sources: - TIF 2 $134K, Water Fund $292K - Sewer Fund $292K - Stormwater Fund $292K - Water Utility Fund) $719K. The InterFund loan has a current balance of $513K, and is being paid back by the General Fund/ General Levy. If this transaction moves forward, staff will recommend the InterFund loan be paid back first, as much as possible, with the benefit of removing a debt service burden from the General Levy. Property Listing The City has not officially listed this property with a broker. However, staff was informally provided direction to begin marketing this property, with CBRE, for sale in late 2015. Because this property is not officially listed, the City has not established an official asking price; or subsequent formal deal range. Traditionally, City owned parcels with similar zoning, and the City's future business park (privately owned), carry asking prices ranging from $1.75 per square foot on the low end up to $2.50 per square foot on the high end. NOTE: asking price is not the same as deal range prices. Sharp & Associates Sharp & Associates is perhaps the most well known "business park" developer in Ramsey. Sharp has several properties in Ramsey, and several others located in Anoka, Maple Grove, and Elk River. The majority of Sharp's buildings are small -bay multi -tenant buildings. This type of product is rare for a developer to